I don't have familiarity with the standard, but one bright Californian engineer who I knew who was into auto computer hacking
much more into automobile technology than I am
had a pretty strong position that California's auto emissions requirements were unreasonably stringent.
That same guy also had a history of making correct technical claims that I didn't I didn't initially believe, like that USB device-to-host transfers had to be triggered via host-side polling, and that there's no device-driven interrupt mechanism (he was right), so he's got a pretty good track record in my book.
That's a separate issue from whether-or-not there's a legal basis for the Trump administration to revoke California's waiver, or of whether market fragmentation on emissions standards is an economic concern, which are also factors here.